Indian states are racing to attract data centre investments, positioning themselves as hubs for the rapidly-growing industry. Andhra Pradesh, Telangana, and Maharashtra are leading the charge, unveiling ambitious plans to bolster their digital infrastructure and attract global players.
In Andhra Pradesh, IT Minister Nara Lokesh told CNBC-TV18 that Vishakhapatnam is being developed as a global IT destination. “We’re building one of the world’s largest data cities with a complete ecosystem around it,” he said, hinting at significant announcements in the coming months regarding data centres and global capability centres (GCCs).
Telangana Chief Minister Revanth Reddy highlighted the state’s focus on AI, green energy, and GCCs during an interaction with CNBC-TV18 at the World Economic Forum 2025 in Davos. “Many of the world’s leading data centres are coming to Hyderabad. We’re signing more MoUs at Davos to bring additional investments,” he said, adding that Amazon and other major firms are expanding their presence in the region.
Maharashtra has also secured a major boost, with Amazon Web Services (AWS) announcing an $8.3-billion investment in cloud infrastructure for the AWS Asia-Pacific (Mumbai) region. The project is expected to contribute $15.3 billion to India’s GDP by 2030 and create over 81,300 jobs annually in the data centre supply chain.
India’s Data Centre Market: A growing powerhouse
India’s data centre market saw robust growth in 2024, with 191 MW of IT capacity added and 407 MW absorbed, according to real estate consultant Savills India. The country’s total operational capacity reached 1,110 MW IT by the year-end, reflecting a compounded annual growth rate (CAGR) of 22% since 2014.
Further, India’s data centre market is projected to grow at a CAGR of 21%, reaching a total capacity of 3,400 MW by 2030.
The rising adoption of cloud computing, AI, big data, e-commerce, and the Internet of Things (IoT) are key drivers of this growth. Sectors such as BFSI, IT & ITeS, and hyperscalers are leading the demand for colocation services and data storage solutions.
“India is witnessing a surge in data centre land transactions due to growing demand and expansions by operators and hyperscalers. Over 200 acres of land were acquired in 2024 across key cities like Mumbai, Hyderabad, Pune, Chennai, and Bengaluru,” Savills said in its report.
Future prospects and opportunities
In a conversation with CNBC-TV18, Union IT Minister Ashwini Vaishnaw highlighted the government’s focus on creating AI-ready datasets to further enhance the country’s digital ecosystem. “We have large datasets in agriculture, transportation, and logistics. The goal is to prepare these for AI use as part of the AI Mission in 2025,” he noted.
